Paying Tips in Cash or by Credit Card
Jun 15th, 2008, 12:29 PM
#1
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Paying Tips in Cash or by Credit Card
In two weeks time will be visiting the US with the family to Boston, Chicago, Washington D.C and New York for about 10 nights each place. I understand at restaurants it is expected a tips of about 15% to 20%.
My question is: when I am paying by credit card is it preferable to pay the tips in cash or just to added to the check.
What about when one is using the hotel restaurants say for breakfast or dinner. Normally I would added to my room. Should i do the same with tips or pay in cash which probably is preferable to the server if not out of the norm.
Also, for tips it is the practice to leave the amount on the table ot to give it by hand to the server as in Germany for example.
Your suggestions would appreciated on best practices...
My question is: when I am paying by credit card is it preferable to pay the tips in cash or just to added to the check.
What about when one is using the hotel restaurants say for breakfast or dinner. Normally I would added to my room. Should i do the same with tips or pay in cash which probably is preferable to the server if not out of the norm.
Also, for tips it is the practice to leave the amount on the table ot to give it by hand to the server as in Germany for example.
Your suggestions would appreciated on best practices...
Jun 15th, 2008, 12:47 PM
#2
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Either way -- cash or credit card -- is fine.
When you get the receipt, there is space for you to write in the tip amount and the new total. You can pay by credit card or charge it to your room, either is fine.
You can write zero for the tip on the receipt (and fill in the total), and just leave cash on the table.
Do whatever is most convenient for you.
Jun 15th, 2008, 12:48 PM
#3
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Most employees that earn tips have to declare them on taxes. If you really like the service, give them cash and let them decide just how much they want to claim and how much they can appreciate. We give cash no matter what the circumstances (room service, etc.) - also you can leave the tip on the table in an establishment if you want, most employees are considerate of each other and will pass them to the appropriate person.
Now this is just my opinion on what we have seen and discussed with restaurant employees - I could very well be incorrect and if I am, am sure I'll get ripped for my statements.
Now this is just my opinion on what we have seen and discussed with restaurant employees - I could very well be incorrect and if I am, am sure I'll get ripped for my statements.
Jun 15th, 2008, 12:50 PM
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You can do either one. Certainly the slip you sign to charge meals to you room will have a space to add the appropriate tip.
I never tip in cash in restaurants if I am paying by credit card, but I always leave a dollar per person per day for the maid in our hotel room, especially if we have been at all messy or have lots of bags that get in their way as they work. They are badly paid and are genuinely appreciative.
Boston is very easy since the tax on food is 5%, so you can simply tip 3 times the tax for 15%. BUT alcohol is not taxed on the bill, so if alcohol is an important part of the bill, you should multiply by 4.
Taxes differ from state to state, but an 8% tax could be doubled for a convenient tip, or 2 1/2 times for 20%.
I never tip in cash in restaurants if I am paying by credit card, but I always leave a dollar per person per day for the maid in our hotel room, especially if we have been at all messy or have lots of bags that get in their way as they work. They are badly paid and are genuinely appreciative.
Boston is very easy since the tax on food is 5%, so you can simply tip 3 times the tax for 15%. BUT alcohol is not taxed on the bill, so if alcohol is an important part of the bill, you should multiply by 4.
Taxes differ from state to state, but an 8% tax could be doubled for a convenient tip, or 2 1/2 times for 20%.
Jun 15th, 2008, 01:25 PM
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Please tip generously.
A few extra dollars means little to you, but it means A LOT to service people.
Here in my hometown of New York, I see 15% as a bare minimum. I generally tip 20-25% of the total bill. They need the money more than I do. (And if a sommelier or fromagier is particularly helpful, I compensate them directly.)
Presumably you're not destitute if you can afford to travel to the USA for 10 nights so, please, be generous.
Enjoy!
A few extra dollars means little to you, but it means A LOT to service people.
Here in my hometown of New York, I see 15% as a bare minimum. I generally tip 20-25% of the total bill. They need the money more than I do. (And if a sommelier or fromagier is particularly helpful, I compensate them directly.)
Presumably you're not destitute if you can afford to travel to the USA for 10 nights so, please, be generous.
Enjoy!
Jun 15th, 2008, 01:57 PM
#7
Either way works - if I have the right amount of cash I leave a cash tip. If not, I put it on the charge slip.
ackislander's hint about using the tax as a way to figure the tip is a good one. Since you are used to a VAT and having just one total for the meal - you may be surprised to see the final bill to be higher w/ a separate tax amount.
You are not expected to tip on more than the food/beverages. So look at the tax amount, and in most places doubling it is a good rule of thumb. A little more or a little less depending on the tax rates.
ackislander's hint about using the tax as a way to figure the tip is a good one. Since you are used to a VAT and having just one total for the meal - you may be surprised to see the final bill to be higher w/ a separate tax amount.
You are not expected to tip on more than the food/beverages. So look at the tax amount, and in most places doubling it is a good rule of thumb. A little more or a little less depending on the tax rates.
Jun 15th, 2008, 02:00 PM
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Ahmed:
Service people work very hard in this country and do depend on tips so we try to be as generous as we can. Most of the time we leave cash but once in awhile will add the tip to the bill.
Enjoy your visit.
Sandy
Service people work very hard in this country and do depend on tips so we try to be as generous as we can. Most of the time we leave cash but once in awhile will add the tip to the bill.
Enjoy your visit.
Sandy
Jun 15th, 2008, 02:05 PM
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In Europe I always leave extra on the table because I am never sure who gets it when the service cost is added to the bill.
In the US, I am not always sure either, so I often leave it on the table when I pay a central cashier as opposed to paying the server.
I have even been known to ask, "If I put the tip on here, do you get all of it?" That may be a tacky question, but at least I know where my money is going.
The most difficult place I ever was in when it came time to pay and tip was in Edinburgh. This particular restaurant took a most unusual total team approach to serving the customers.
Each time an order was ready for serving, the computer system showed the table location. The first server to see it grabbed the plate and brought to the table.
By the time we had finished our meal, no fewer than 5 different servers had brought something to the table. In that case I asked.
The young man told me that each server shared equally in the total tip collection.
Service was so efficient that I felt motivated to leave a little extra.
I never quite saw anything like it before or since. All of the serving staff was hustling to get the job done, and the manager seemed to me like he went out of his way to promote a spirited group.
In the US, I am not always sure either, so I often leave it on the table when I pay a central cashier as opposed to paying the server.
I have even been known to ask, "If I put the tip on here, do you get all of it?" That may be a tacky question, but at least I know where my money is going.
The most difficult place I ever was in when it came time to pay and tip was in Edinburgh. This particular restaurant took a most unusual total team approach to serving the customers.
Each time an order was ready for serving, the computer system showed the table location. The first server to see it grabbed the plate and brought to the table.
By the time we had finished our meal, no fewer than 5 different servers had brought something to the table. In that case I asked.
The young man told me that each server shared equally in the total tip collection.
Service was so efficient that I felt motivated to leave a little extra.
I never quite saw anything like it before or since. All of the serving staff was hustling to get the job done, and the manager seemed to me like he went out of his way to promote a spirited group.
Jun 15th, 2008, 02:18 PM
#10
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Personally, if we're paying by credit card, we tip by credit card. If we pay by cash, we leave the tip on the table, after the server has made change. I rarely hand the money directly to the server unless there appears to be a risk of that money walking off from the table. I would say that everyone I know (incl. former wait staff) does it this way, so you would not be acting inappropriately to do it this way.
Jun 15th, 2008, 02:59 PM
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Here's another thought. More than once I've heard of people leaving the tip in cash, but when they got their credit card bill at the end of the month discovered that a tip had been added. Since restaurants can add a tip for groups, for example. It is possible for a waiter to say he never got a cash tip, and the restaurant may add a "service charge" instead. I know as a fact that sometimes happens in lots of restaurants when the guests were foreigners -- who are often known not to tip.
If paying with a credit card, I can think of NO good reason not to add the tip to the charge slip. It will NOT affect what a server can claim or not claim on his tips -- those are generally set by the restaurant.
If paying with a credit card, I can think of NO good reason not to add the tip to the charge slip. It will NOT affect what a server can claim or not claim on his tips -- those are generally set by the restaurant.
Jun 15th, 2008, 03:30 PM
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I guess that's true, but how many foreigner's know that? There are lots of things that "can't" or "shouldn't" happen with credit card charges that do happen.
The bottom line is I can't think of a single good reason to leave the tip in cash when charging. (and several restaurant server friends agree with that).
The bottom line is I can't think of a single good reason to leave the tip in cash when charging. (and several restaurant server friends agree with that).
Jun 15th, 2008, 03:31 PM
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When I leave a cash tip on a bill paid by CC, I always print the word "cash" on the receipt to eliminate any possible ambiguity.
I have heard reports of restaurants stiffing/shorting employees on the amount of their tips from CC payments, and that is one reason to use cash, even when paying by credit.
I have heard reports of restaurants stiffing/shorting employees on the amount of their tips from CC payments, and that is one reason to use cash, even when paying by credit.
Jun 15th, 2008, 03:59 PM
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One more point Ahmed --
When leaving a tip for housekeeping, I always put it directly on the pillow, as opposed to on the table, etc. Some hotels are very strict with their employees about "found" cash -- due to fears about money being stolen, etc., I guess. I've stayed in some establishments where the $ I left for housekeeping went unclaimed for several days - a co-worker finally clued me in!
When leaving a tip for housekeeping, I always put it directly on the pillow, as opposed to on the table, etc. Some hotels are very strict with their employees about "found" cash -- due to fears about money being stolen, etc., I guess. I've stayed in some establishments where the $ I left for housekeeping went unclaimed for several days - a co-worker finally clued me in!
Jun 15th, 2008, 04:04 PM
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I always tip in cash so the server doen't have to claim it and therefore doesn't have to pay taxes on it. If I pay by credit card, I write cash or draw a line thru the place to add a tip so no one can go back and change it.
I also tip based on the entire bill. I, personally, don't deduct the tax. Today was the first time I had ever heard of anyone doing that.
I also tip based on the entire bill. I, personally, don't deduct the tax. Today was the first time I had ever heard of anyone doing that.
Jun 15th, 2008, 05:25 PM
#18
rizzo0904: "I always tip in cash so the server doen't have to claim it and therefore doesn't have to pay taxes on it"
You are mistaken about the taxes. The IRS assumes an amount of tips received, so the wait staff has to declare them whether paid in cash or via cc. Years ago waiters could get away w/ not declaring all/any of their tips but enforcement has change dramatically.
You are mistaken about the taxes. The IRS assumes an amount of tips received, so the wait staff has to declare them whether paid in cash or via cc. Years ago waiters could get away w/ not declaring all/any of their tips but enforcement has change dramatically.
Jun 15th, 2008, 05:32 PM
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That is correct. When I waited tables (many many moons ago), 8% of a server's gross receipts were reported as income.
So, whether paid in cash or credit, a server paid the same in taxes, and he/she did not "choose" what to report as income.
So, whether paid in cash or credit, a server paid the same in taxes, and he/she did not "choose" what to report as income.
Jun 15th, 2008, 05:34 PM
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I know I am in the minority here but I always prefer to put tips on the credit card. I have to pay tax on everything I earn -- why shouldn't they?
I earn more than some and less than others but I still must pay the government on all I earn. If the servers don't pay tax on their tips -- which is the majority of their pay -- then my share goes up as the rates increase to cover the amount the government needs to collect.
I know I am in the minority but it is how I feel.
I earn more than some and less than others but I still must pay the government on all I earn. If the servers don't pay tax on their tips -- which is the majority of their pay -- then my share goes up as the rates increase to cover the amount the government needs to collect.
I know I am in the minority but it is how I feel.
